Forex: USD/JPY: Dollar re-testing 92.20 high after bouncing at 91.55

By IBT Staff Reporter On 10/26/09 AT 10:52 AM

FXstreet.com (Barcelona) - Decline from 92.20 Asian session high found support at 91.55 session low, and the Dollar has picked up during the day to attempt a re-test of the 92.20 area at the moment of writing.

On a wider perspective, Mohammed Isah, technical analyst at FXTechstrategy, recalls the bearish pattern n dauly and weekly charts: Outlook for USDJPY though nearer term higher, is largely bearish short and medium terms suggesting its current recovery is corrective of its declines triggered off the 101.43 level in April'09.

Furthermore, Isah foresees resistance at 92.70 capping Dollar rally: More evidence of this view is provided by its falling channel patterns both on the weekly and daily charts and the immediate risk is for that channel resistance currently at the 92.70 level to be tested and eventually turning off the pair.